Transcript Chapter 4: Developing the Right Market Mix

Entrepreneurship and Small
Business Management
Chapter 7
Developing the Right Marketing Mix
and Plan
Ch. 7 Performance Objectives
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Combine the four Ps—product, price, place,
and promotion—into a marketing mix.
Choose the attributes of your product or
service.
Determine the mix of promotion to use for
your business.
Find a way to add the fifth P, philanthropy,
to your business.
Entrepreneurship and Small Business Management, 1/e
By Steve Mariotti and Caroline Glackin
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© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Ch. 7 Performance Objectives
(continued)
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Understand the importance of a
marketing plan.
Identify the critical components of a
marketing plan.
Use breakeven analysis to evaluate
your marketing plan.
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Marketing Mix: The Four Ps
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Product—What are you selling?
Price—What does the price “say” about
your product?
Place—What is the best location for
your business?
Promotion—How will you advertise and
publicize your product?
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© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Create Your Product Concept
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Products are defined by:
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Physical attributes
Performance characteristics
Pricing
Branding
Delivery
Key to successful branding: focus on
the product’s primary benefit
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Establish Your Brand
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Choose an easy-to-remember name
that describes your business.
Design a logo that symbolizes your
business.
Develop a good reputation.
Create a brand “personality” and
communicate it to your target market.
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Build Your Brand’s Reputation
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Provide a high-quality product/service.
Maintain high ethical standards.
Define the product/service clearly.
Treat employees well.
Make ads positive and informative.
Associate the company with a charity.
Be involved in the community.
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Price Considerations
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Simply undercutting competitors’
prices will not necessarily win you
the largest market share.
Consider the psychology of pricing:
consumers tend to infer things about
a product/service based on its price.
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© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Place
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The type of business affects the
location that works best.
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Who are your customers?
Where do they shop?
Goal: Find a location affordable for you,
yet also convenient for customers.
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© 2012 Pearson Education, Upper Saddle River, NJ 07458.
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Promotion
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Promotion—use of advertising and
publicity to get your marketing
message to your customers.
Advertising—purchased promotion
(billboards, TV ads, magazine ads, etc.)
Publicity—free mention of a company,
person, or product/service in the media
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Promotion Methods
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Advertising specialties
Banner ads
Billboards
Blogs
Broadcast media
Brochures
Business cards
Catalogs
Coupons
Direct mail
Directories
Flyers
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Networking
Newsletters
Print media
Promotional clothing
Public speaking
Samples/demos
Special events
Sponsorships
Telemarketing
Toll-free numbers
Web sites
© 2012 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.
Philanthropy: The Fifth P
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Philanthropy—a concern for human
and social welfare, expressed by giving
money through charities/foundations
Foundation—not-for-profit organization
that manages funds donated to help
people and social causes
Philanthropy creates goodwill—
favorable reputation, name recognition,
and positive customer relations
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Cause-Related Marketing
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Inspired by a commitment to a social,
environmental, or political cause
Simple way to work philanthropy into
your business
Examples:
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Donate fixed % of revenue to charity
Donate products/services
Encourage employees to volunteer
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Roles of a Marketing Plan
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Convince skeptical investors that your
plan has merit.
Use and disclose market studies.
Identify the target market.
Evaluate the competition.
Demonstrate the pricing strategy.
Detail the advertising plan.
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Marketing Plan Components
Components
Stand-Alone Bus. Plan
Plan
Section
Opportunity Analysis:
X
• Industry Analysis
X
• SWOT Analysis
X
• Environmental Analysis
X
• Competitive Analysis
X
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Marketing Plan Components
Components
Stand-Alone Bus. Plan
Plan
Section
Marketing Analysis:
X
X
• Overall Market and Target
X
X
• Goals and Objectives
X
X
• Marketing Strategy
X
X
Product/Service
X
X
Pricing Strategy
X
X
Promotion Strategy/Plan
X
X
Place/Distribution
X
X
Philanthropic Plan
X
X
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Marketing Plan Components
Components
Stand-Alone Bus. Plan
Plan
Section
Marketing Analysis (continued):
• Future and Contingency Plans
X
X
X
X
Financial Projections
X
Implementation Time Line
X
Measurement
X
Supplemental Materials
X
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Can You Afford Your
Marketing Plan?
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Marketing is part of your business’s fixed
costs and should not be budgeted as a
percent of sales.
Calculate breakeven units to determine if
the business can cover marketing costs with
the number of units you expect to sell.
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Breakeven units = Fixed cost (per month or
per year) divided by gross profit per unit
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By Steve Mariotti and Caroline Glackin
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© 2012 Pearson Education, Upper Saddle River, NJ 07458.
All Rights Reserved.